Here's a DIY idea for looking old school and protecting your iPod at the same time...
Maybe it'll even prevent your iPod from being appealing to would-be thieves (from the comments in the post over on SwissMiss):
"I am friends with a priest who works in some rough neighborhoods in Santiago, Chile. One time last year, when he was walking home late at night and listening to music, two men approached him and demanded his MP3 player. He pulled out his beat-up Walkman from his pocket and the two muggers were disgusted. They didn't take it and they just walked away.
So it sounds like the strategy might work, although my friend's cassette player was much less cool looking than the nice red one pictured in this post."